LAST_UPDATETue, 19 Jun 2018 2pm

Federal Govt Helped Penang To Reduce Debt - Gerakan

Filepic: UtusanFilepic: UtusanGEORGE TOWN: The DAP-led Penang Government has been reminded to give credit to the federal government for the state government’s excellent financial management.

Penang Gerakan treasurer, Ng Fook On claimed the state government had repeatedly been misleading the people into believing that the state debt was the lowest among all the states due to its good financial management.

He said what Penang was enjoying now was due to the federal government which had converted the RM655.24 million in water debt to 45 annual lease payments of RM14.56 million by the Penang Water Supply Corporation (PBAPP).

"Without the help of the federal government, our state debt at the end of 2016 would have increased to RM721.57 million," he told reporters here today.

Ng noted the Penang chief minister had been “boasting” that Penang's debt had gone down by 90 per cent since they (DAP) took over in 2008 but did not recognise the federal government help.

Ng said according to a PBAPP presentation in 2012, it was stated that Penang's migration to National Water Service Restructuring Initiative resulted in an immediate reduction of the state debt of RM655.24 million.

"Lim should let the people of Penang know that the state debt was down drastically due to the take-over of the RM655.24 million debt after a restructuring in 2011 by the federal government through the Water Service Industry Act 2006," he said.

However, Ng said there was a long-term liability of RM655.24 million to be repaid over 45 years to the federal government.